Financial markets are spaces where the buying and selling of various financial instruments such as shares, bonds, derivatives and more is authorised and possible.
For some time now, financial markets are no longer physical places, but computer platforms known as ‘trading venues’. Within them, trading proposals intersect.
Within the financial markets, there are 3 different types of operating entities:
These are those entities which, in order to finance their activities, issue financial instruments suitable for circulation and thus to be traded on a market. Companies organised as corporations, public bodies and the State are the most important issuers of financial instruments;
Are the parties who go to the market to find and buy or sell financial instruments;
Their task is to facilitate the meeting between issuers and investors, encouraging the transformation of savings into productive investments. The bank's activity of granting credit to businesses and households is the best known financial intermediation function today. Underlying this activity is the important work of collecting and managing information on the state of the economy as a whole and on the capital strength and expected future profitability of those seeking credit.